The Central Government has launched a Unified Pension Scheme, allowing eligible civil employees to opt for the Old Pension Scheme (OPS) instead of the National Pension Scheme (NPS).
The Union Cabinet, chaired by the Prime Minister Narendra Modi, today approved the Unified Pension Scheme (UPS).
The salient features of the UPS are:
Assured pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.
Assured family pension: @60% of pension of the employee immediately before her/his demise.
Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
Inflation indexation: on assured pension, on assured family pension and assured minimum pension
Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees
Lump sum payment at superannuation in addition to gratuity
1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension.
The UPS will come into effect from April 1, 2025 but will be applicable to all those who have retired under the NPS from 2004 onwards.
